Mon, May 28, 2012, 2:49 PM EDT - U.S. Markets closed for Memorial Day

Nigeria oil line on fire; militants claim attack

Eni SpA oil pipeline on fire in Nigeria's crude-rich southern delta as militants claim attack

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LAGOS, Nigeria (AP) -- An Eni SpA oil pipeline ruptured and caught fire as a militant group claimed responsibility for an attack in the region, their first alleged assault in months as its purported leader awaits trial on terrorism charges in South Africa.

The Movement for the Emancipation of the Niger Delta also threatened to attack South African interests in an email sent to journalists late Saturday night, as its alleged leader Henry Okah remains imprisoned there.

South African businesses "will pay a heavy price for the interference of (President) Jacob Zuma in the legitimate fight for justice in the Niger Delta, by its people," the statement read. "The South African president has reduced himself to the position of a hired thug."

South African businesses, like mobile phone carrier MTN Group Ltd. and others, have operations throughout Nigeria, Africa's most populous nation with more than 160 million people. While other MEND threats have failed to materialize in the past, Saturday's apparent attack could mean the militant group is willing to begin its assaults again.

The fire happened Saturday night near Brass River in Nigeria's Bayelsa state, home to the nation's President Goodluck Jonathan. Witnesses told a local environmental group they heard the blast from their homes.

In its email, the militant group known by the acronym MEND said it "attacked and destroyed" the pipeline run by a Nigerian subsidiary of Eni.

A Rome-based spokesman for Eni, speaking on condition of anonymity per company policy, acknowledged that either a fire or attack had happened on the pipeline, cutting about 4,000 barrels of crude oil production a day.

Lt. Col. Timothy Antigha, a spokesman for the military in the restive region, acknowledged "claims of a fire" on the pipeline, but said soldiers could not independently verify it.

The attack occurred in the oil-rich Niger Delta, where foreign firms have pumped oil out of the country for more than 50 years. Despite the billions of dollars flowing into Nigeria's government, many in the delta remain desperately poor, living in polluted waters without access to proper medical care, an education or work.

In 2006, militants from groups like MEND started a wave of attacks targeting foreign oil companies, including bombing their pipelines, kidnapping their workers and fighting with security forces. That violence ebbed in 2009 with a government-sponsored amnesty program promising ex-fighters monthly payments and job training. However, few in the delta have seen the promised benefits and scattered kidnappings and attacks continue.

MEND itself, once a powerful, media-friendly militant group in the region, has seen its influence wane over the last year. Its largest major confirmed attacks were a dual car bombing in Nigeria's capital Abuja on Oct. 1, 2010, that killed at least 12 people and the November 2010 kidnapping of seven expatriate workers from offshore oil rigs operated by London-based Afren PLC and Exxon Mobil Corp.

After the Abuja bombings, authorities in South Africa arrested Okah on terrorism charges. His trial there is scheduled to begin Oct. 1.

Okah has repeatedly denied being the leader of the militant group, though Nigeria's government has labeled him as a major arms importer to the region. South African prosecutors also have presented evidence in earlier hearings drawn from Okah's diaries and computer correspondence that they said bolstered accusations he masterminded the October bombings.

___

Jon Gambrell can be reached at www.twitter.com/jongambrellAP.

 

11 comments

  • oldman1  •  Liberty, Texas  •  3 months ago
    Well we can look for gas to shoot back up in the next few days.lol but when has it gone down to stop and think about it.
  • A. M. Deist  •  Mary Esther, Florida  •  3 months ago
    Not to worry. Countries throughout the world can ill afford to have oil above $100 a barrel. Nothing would derail the economic improvements being made in the United States and elsewhere faster than an increase in taxes, and that is exactly the results that higher oil prices yield. If you disagree with my assessment, and are invested in securities other than oil, you would serve your pocketbook well to stay out of the markets.
    • Diversified Image 3 months ago
      Always hedge your bets with energy equities and resource plays. It's part of diversification.
    • A. M. Deist 3 months ago
      You are correct, but when I choose to own an oil company, I hedge my bets with SCO which goes up when oil drops.
  • egoist_capitalist  •  3 months ago
    Luckily, a hardy supply is available to us from our friends up North, in Canada. Oh...well, maybe we can get something brewing on that front in another 11-months.
    • Road Warrior 3 months ago
      The #1 export of the USA is Fuel. Reported 12/31/2011 by USA TODAY and others.
    • Bob Smith 3 months ago
      What's your point? We export a million barrels per day (net). We import about 9 million barrels per day of oil. So we are a net importer of petroleum by about 9 million barrels per day.
  • Executive Decision  •  3 months ago
    With this, and the Iranian blabbermouth, oil ought to start climbing toward $110 next week. If that holds, then expect $120 by March. I want to see stats on how many people die this winter from lack of heat.
    • TedEx 3 months ago
      I am paying out the Kazoo for home heating oil. Thank you, President Obama. Thanks for nothing.
    • bill 3 months ago
      I turned down my thermostat to 50 degrees and use a space heator can,t afford to buy another tank of oil at $3.70 a gallon my 300 gallon tank would cost me over $1100 . Thanks OPEC and Big Oil. Just 3 years ago it was $1.80 GREED.
    • Diversified Image 3 months ago
      Time to convert to natural gas. Maybe Obama will give you a rebate or a tax credit.
  • Ron  •  Port Orange, Florida  •  3 months ago
    Here we go again--probably set by the oil companies to raise the price of oil.
    • Richard 3 months ago
      I was thinking that it was set by the current evil regime here in the land that used to be called the United States of America.
    • Magron 3 months ago
      of course 30 seconds of googling shows ya that nigeria doesnt export enough crude to be noticed in the world market but what fun is that?
    • Tommy 3 months ago
      Namely BY OBUMMA.
  • Not a Liberal!  •  Austin, Texas  •  3 months ago
    Ah yes, another reason for the market leaders to bid up the price of crude a bit more. WTI has been under $100 for what, 3 days now? That's not acceptable. Come AP! Crank up that pinko-commie propoganda machine of yours and get the American public in the 'left' frame of mind! RINO's, neo-cons and democrats of the new Amerika are counting on you!
    • Magron 3 months ago
      'pinko commie propaganda' LOL you F'Tard.
    • Road Warrior 3 months ago
      Old cold war name calling. So the Capitalists on Wall Street are "pinko commies?" I was born when Sputnik was launched and I think name calling is not productive. But I served for the freedom of speech thing so go for it.
    • Choohader 3 months ago
      All media in the USSA is Yiddish propganda.
  • vox populi  •  Milwaukee, Wisconsin  •  3 months ago
    Obviously, to stem the rot of worldwide dastardly Islamic offensive, the super-powers must join hands to create something like the NATO that will launch a virulent counter-offensive. This will be a holy tactic insofar as this counter-offensive will compel the Muslims supporting the terrorists withdraw it thus saving human lives and wealth of countries. There is absolutely no sense in maintaining the defensive role.
  • Road Warrior  •  3 months ago
    This is taken from USA TODAY reported on 12/31/2011.
    NEW YORK (AP) – For the first time, the top export of the United States, the world's biggest gas guzzler, is — wait for it — fuel. Measured in dollars, the nation is on pace this year to ship more gasoline, diesel, and jet fuel than any other single export, according to U.S. Census data going back to 1990. It will also be the first year in more than 60 that America has been a net exporter of these fuels.

    Just how big of a shift is this? A decade ago, fuel wasn't even among the top 25 exports. And for the last five years, America's top export was aircraft.
  • Bill  •  3 months ago
    Had to have neen left wing, democrat supported, OWS terriorists, imported from the USA. Paid for by the DNC, Nazi Pelosi - Head rat Democrat.
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  • Derek  •  3 months ago
    Come over to my website GoId Trading Academy and I'll show you just how real this is. I know this is going to be hard to believe, but I promise you it's 100% true, the price of Gold is controlled by a computer program,
 
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